Client deposits increased by 5% year-over-year, and consumer relationship households were up 3.3% annualized year-to-date. This highlights the success of the relationship-based business model and strategic commitment to primacy.

Since the launch of Key Private Client last year, the platform has added over 31,000 households and approximately $2.9 billion of new household assets. This indicates successful expansion into the mass affluent segment.

Average loans were $109.0 billion for Q2 2024, a decrease of $11.7 billion compared to Q2 2023. This reflects Key's planned balance sheet optimization efforts in 2023.

The Common Equity Tier 1 (CET1) ratio improved to 10.5% at the end of Q2, up approximately 20 basis points from last quarter and over 120 basis points from a year ago. This reflects efforts to improve balance sheet resiliency to changes in interest rates.

Noninterest expense was $1.1 billion for Q2 2024, compared to $1.1 billion for Q2 2023. This indicates successful management of expenses despite inflationary pressures.

Net charge-offs and delinquencies remain below the long-term target, demonstrating continued risk discipline.

On July 27, 2023, federal banking agencies issued a proposal that would make significant changes to the Regulatory Capital Rules applicable to banking organizations with total assets of $100 billion or more, including KeyCorp and KeyBank.

The FDIC indicated that no further adjustments to assessments are contemplated at this time to recover those losses but that it will re-evaluate this issue in the future when it updates projections for the DIF balance and the reserve ratio.

On June 20, 2024, the FDIC adopted a final rule to amend and restate its current resolution plan rule in order to clarify and strengthen resolution plan submission requirements and reflect lessons learned since the adoption of the FDIC's current resolution plan rule in 2012.

Commercial and industrial loans totaled $53.1 billion at June 30, 2024, a decrease of $2.7 billion, or 4.8%, compared to December 31, 2023. The decrease was broad-based across most industry categories and reflects the competitive environment, low client demand

Average deposits totaled $144.2 billion for the second quarter of 2024, an increase of $1.3 billion compared to the year-ago quarter. The increase was reflective of growth in retail deposit balances and our focus on growing deposits across our commercial business.

Our continuous focus on maintaining our risk discipline has and will continue to position us to perform well through all business cycles. Net charge-offs and delinquencies remain below our long-term target.

Nonpersonnel expenses for the three months ended June 30, 2024, decreased $11 million, or 2.4%, from the year-ago quarter, primarily due to decreases across most other expense categories

Personnel expense increased by $14 million, or 2.3%, for the three months ended June 30, 2024, compared to the same period one year ago. The increase reflects the impact of a higher stock price on stock-based compensation compared to a year ago.

Effective in the first quarter of 2024, we realigned our real estate capital business from our Commercial Bank reporting unit to our Institutional Bank reporting unit. The move was done to align product-based teams to the client-facing businesses they serve with the goal of reducing overhead and complexity and creating a better client experience.

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint and through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services.

Nonpersonnel expenses for the three months ended June 30, 2024, decreased $11 million, or 2.4%, from the year-ago quarter, primarily due to decreases across most other expense categories, offset slightly by increases in computer processing expenses.

Like all businesses, we are subject to operational risk, which is the risk of loss resulting from human error or malfeasance, inadequate or failed internal processes and systems, and external events. These events include, among other things, threats to our cybersecurity, as we are reliant upon information systems and the internet to conduct our business activities.

We did not complete any open market share repurchases in the second quarter of 2024, and have no Board-approved repurchase authorizations outstanding.

All of our capital ratios remained in excess of regulatory requirements at June 30, 2024. Our capital and liquidity levels are intended to position us to weather an adverse operating environment while continuing to serve our clients' needs

At June 30, 2024, we had 313.5 million treasury shares, compared to 320.1 million treasury shares at December 31, 2023. Going forward we expect to reissue treasury shares as needed in connection with stock-based compensation awards and for other corporate purposes.

This 10-Q filing does not contain a dedicated section or specific highlights related to ESG initiatives, environmental commitments, social responsibility programs, or governance practices.

our ability to manage our reputational risks, including ESG-related risks

Furthermore, economic uncertainty remains elevated as geopolitical tensions, the presidential election cycle and the timing of the Federal Reserve's first rate cut are adding uncertainty into the forecast.

Commercial real estate values remain under pressure, with office being the most vulnerable asset class.

Under the Dodd-Frank Act, large financial companies like Key are subject to heightened prudential standards and regulation. This heightened level of regulation has increased our operational risk.